Retailers optimistic about AI but full deployment remains distant
Retailers are showing high levels of confidence in agentic artificial intelligence, according to new research from Fluent Commerce, with more than two-thirds believing it will improve operational efficiency by 2026. However, widespread adoption remains limited and challenges continue to hamper rollout.
AI optimism
The study found that 71% of retail professionals expect agentic AI to enhance efficiency within the next two years. Despite this optimism, only 12% said they are currently experiencing strong impacts from the technology. A total of 70% are either trialling or have started to implement agentic AI, yet just 8% have fully deployed it throughout their operations. Only 5% described their AI systems as mature and optimised.
Agentic AI is considered by 88% of respondents as important or very important for staying competitive. The broader outlook is similarly positive, with 41% of retailers feeling optimistic about the state of the sector in 2026. Only 15% reported a pessimistic view.
Implementation barriers
While enthusiasm for AI is widespread, the research points to several persistent barriers to scaling the technology. Ethical and regulatory concerns, alongside issues of customer trust and transparency, were cited by 43% of the sample. A further 39% identified data quality and integration issues, and 36% pointed to a talent and skills gap as an obstacle. Return on investment justification and the need to align with legacy systems also featured prominently among the challenges.
Economic pressures remain a key concern, named by 44% of retailers as one of their main challenges for 2026. The inability to keep up with technology change was also highlighted by 38%, and 19% pointed to international supply chain disruptions.
Current deployment
AI deployment is mainly focused on customer-facing functions, with 56% of retailers using the technology in customer service and chatbots. Personalised marketing is another significant area, where 46% have rolled out AI. Plans for the future indicate that 30% of retailers expect to deploy agentic AI in inventory management and 32% intend to apply it to supply chain optimisation next year.
The report suggests that while pilot schemes are common, only a minority have achieved full-scale adoption and optimisation across their operations.
Data and integration
The ability to extract benefits from agentic AI depends heavily on the readiness of retailers' underlying systems. Clean data, trustworthy systems, and effective integration with existing technology stacks remain significant challenges.
"Retailers are clearly investing in AI, but the journey from pilot to full-scale deployment is proving more complex than expected. The technology is promising, but without the right foundations, such as clean data, trust, and ability to integrate into existing technologies, it's hard to unlock its full potential," said Nicola Kinsella, Chief Strategy Officer, Fluent Commerce.
Many retail leaders are still working to address these underlying conditions, as highlighted by ongoing concerns over legacy systems and data issues.
Looking forward
While agentic AI is seen by respondents as a requirement for maintaining competitiveness, operational realities are leading to a measured approach. Most retailers are still focusing on customer service tools and marketing, while serious expansion into core areas such as inventory and fulfilment is set for the near future.
"Retailers understand that AI alone doesn't solve their fulfillment challenges. But when Agentic AI can see the full operational picture, such as order exceptions, processing speeds at each fulfillment location, delivery delays, location-level capacity, and how often orders ship from the ideal node, it can drive immediate efficiency improvements. These same signals also enable smarter in-season inventory allocation and rebalancing. With the right data and a thoughtful rollout, retailers can capture real, measurable benefits from AI," said Kinsella.
